Allied Properties Real Estate Investment Trust Commences Full Construction of Phase I of QRC West

Allied Properties REIT announced that it has initiated the full construction process for Phase I of QRC West, an intensification project in Toronto's rapidly transforming downtown area. Extending along the west side of Peter Street, from Queen Street to Richmond Street, QRC West is an office-retail development that Allied will complete in two phases.

The first phase ("Phase I") will integrate a restored brick-and-beam building, 134 Peter Street, with a new, 11-storey office structure having approximately 250,000 square feet of rentable area that Allied plans to complete to a LEED Gold Standard. Completion of the first phase is scheduled for early 2015. The second phase, which is now well advanced in the municipal approval process, is expected to include a large retail component on the southwest corner of Queen and Peter Streets.

"In our view, QRC West is the next step in the evolution of inner-city office space," said Michael Emory, President & CEO of Allied. "By integrating a distinctive part of Toronto's built legacy with new, LEED-certified structures, it will provide business tenants with creative, efficient and environmentally responsible workspace in one of the most vibrant, mixed-use areas of downtown Toronto."

Allied also announced that it has entered into a lease with Sapient Corporation for approximately 50,000 square feet of office space comprising the 8thand 9th floors of Phase I for a term of 10 years commencing on March 1, 2015. This space will serve as the Canadian head office of Sapient Corporation upon completion.

"We're pleased with all aspects of this initial lease transaction," continued Mr. Emory. "As importantly, we're in discussions with several other high-calibre office tenants having requirements between 50,000 and 100,000 square feet, which should assist us in completing the lease-up of the new component with an optimal tenant-mix. We don't plan to lease the space in the restored component, which includes the most valuable retail space in the project, until the lease-up of the new office component is closer to completion."

Sweeny Sterling Finlayson & Co Architects is the architect of the project, and Eastern Construction is the construction manager. Allied and Eastern are well advanced in tendering the construction work for Phase I and expect to have approximately 95% of the construction costs fixed within a short time. Allied has also received financing proposals from several Canadian financial institutions to provide interim construction financing for Phase I on favourable terms.

 

on December 16, 2012